Description
NSE adds 11 securities to ESM Stage I and moves 2 securities from Stage I to Stage II, effective April 29-30, 2026, with 100% margin requirements and shift to Trade-for-Trade settlement.
Summary
NSE’s Surveillance department has issued Circular 305/2026 under the Enhanced Surveillance Measure (ESM) framework, shortlisting 11 securities for inclusion in ESM Stage I and moving 2 securities from Stage I to Stage II, effective April 29–30, 2026. All affected securities will be shifted from Rolling Settlement (EQ/SM series) to Trade-for-Trade (BE/ST series) and will attract a minimum 100% margin requirement.
Key Points
- 11 securities newly added to ESM Stage I effective April 29, 2026, with 100% margin applicable from April 30, 2026
- 2 securities (GLFL, S&SPOWER) moved from ESM Stage I to Stage II effective April 29, 2026
- No securities moving from Stage II back to Stage I
- All ESM securities shifted from Rolling Settlement segment (EQ/SM) to Trade-for-Trade segment (BE/ST) w.e.f. April 30, 2026
- Stage II securities will trade under Periodic Call Auction with a 2% price band w.e.f. April 29, 2026
- ESM framework operates in conjunction with all other prevailing surveillance measures
- Shortlisting is purely for market surveillance purposes and should not be construed as adverse action against the company
Regulatory Changes
Securities newly added to ESM Stage I (effective April 29, 2026, margin from April 30, 2026):
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | AILIMITED | Abhishek Integrations Limited | INE0CAJ01017 |
| 2 | ARCIIL | ARC Insulation & Insulators Limited | INE0YDV01010 |
| 3 | BHAGYANGR | Bhagyanagar India Limited | INE458B01036 |
| 4 | BLUEWATER | Blue Water Logistics Limited | INE0X3M01010 |
| 5 | DRONE | Drone Destination Limited | INE0P7201019 |
| 6 | EMAMIREAL | Emami Realty Limited | INE778K01012 |
| 7 | PRAXIS | Praxis Home Retail Limited | INE546Y01022 |
| 8 | SATKARTAR | Sat Kartar Life Limited | INE0NB801022 |
| 9 | SHIVAMAUTO | Shivam Autotech Limited | INE637H01024 |
| 10 | SUNLITE | Sunlite Recycling Industries Limited | INE0U2N01013 |
| 11 | YAAP | Yaap Digital Limited | INE0U0J01015 |
Securities moved from ESM Stage I to Stage II (effective April 29, 2026):
| Sr. No. | Symbol | Security Name | ISIN |
|---|---|---|---|
| 1 | GLFL | Gujarat Lease Financing Limited | INE540A01017 |
| 2 | S&SPOWER | S&S Power Switchgears Limited | INE902B01017 |
Securities moved from ESM Stage II to Stage I: Nil
Compliance Requirements
- Brokers/Members: Must apply a minimum 100% margin on all open positions as on April 29, 2026, and on new positions created from April 30, 2026 for ESM Stage I securities
- Market Participants: Must note that ESM Stage II securities (GLFL, S&SPOWER) will only be tradable under Periodic Call Auction with a 2% price band from April 29, 2026
- Settlement: All ESM securities must be settled on a Trade-for-Trade basis under BE/ST series from April 30, 2026; netting of positions is not permitted
- For queries, contact: surveillance@nse.co.in
Important Dates
- April 29, 2026: ESM Stage I and Stage II inclusions become effective; Stage II securities shift to Periodic Call Auction with 2% price band
- April 29, 2026: 100% margin applicable on all open positions as of this date
- April 30, 2026: All ESM securities migrate from EQ/SM (Rolling Settlement) to BE/ST (Trade-for-Trade) series; 100% margin applies on new positions
Impact Assessment
This circular has a high market impact across 13 securities:
- Liquidity Impact: Migration to Trade-for-Trade eliminates intraday netting, sharply reducing liquidity and increasing effective trading costs for all 13 securities
- Cost Impact: 100% margin requirement doubles the capital required to hold positions in ESM Stage I securities, likely triggering forced liquidation by margin-constrained traders
- Stage II Severity: GLFL and S&SPOWER face the most restrictive conditions — a 2% daily price band under Periodic Call Auction significantly limits price discovery and exit options
- Investor Risk: Retail investors holding these securities may find it difficult to exit positions quickly given reduced liquidity and price band constraints
- Surveillance Signal: Inclusion under ESM reflects concerns around price volatility, low liquidity, or other market surveillance criteria — investors should exercise caution
Impact Justification
Affects 13 securities with significant trading restrictions including 100% margin requirements, segment migration from EQ/SM to BE/ST (Trade-for-Trade), and 2% price band under Periodic Call Auction for Stage II securities — directly impacting liquidity and trading costs for investors holding these stocks.